Allvue Systems, LLC recently completed a 2025 General Partner (GP) Outlook Survey revealing compelling trends and challenges in the private equity and venture capital sectors, focusing on market conditions, artificial intelligence (AI) adoption, technology challenges, and data management. AI and Machine learning continues to be top of mind with 47% of GP respondents saying that they were using it in some fashion in Q4 2023, whereas 82% said that they use AI in Q4 2024.

The survey findings provide an in-depth look at how firms are navigating market conditions and transformative technologies. It also delves into the hurdles they face as they strive to enhance operational efficiency, improve decision-making, and meet investor expectations.

Some key findings in the 2025 GP Outlook Report include:

• Optimism remains high around AI adoption despite challenges with implementation, with more than half of respondents believing AI could serve as a key differentiator for their business.
• Only 6% of respondents express a high rate of satisfaction with their current data management solutions in-line with 65% of firms having challenges with data accuracy and aggregation.
• Market conditions are also another top concern for GPs, with only 22% of respondents saying they were “very prepared” to navigate the year ahead.

AI Adoption: High Hopes but Limited Application

While 82% of surveyed firms have adopted AI, the technology remains underutilized, with 58% reporting only minimal use. Regulatory and compliance issues (27%), data quality concerns (26%), and a lack of skilled personnel (19%) are among the top barriers to broader application.

Additional challenges include:

• 29% of firms are unsure how to deploy AI or identify processes that would benefit from AI.
• 24% cite unclear ROI as a deterrent.
• 20% report that AI projects lack internal support.

Despite these obstacles, optimism remains high:

• 54% believe AI could serve as a key competitive differentiator.
• Firms see AI’s greatest potential in enhancing operational efficiency (31%), improving data management and reporting (23%), and aiding decision-making (18%).
• Specific areas identified for AI’s utility include accounting workflows (19%), portfolio management (18%), and client reporting (18%).

Encouragingly, only 9% of firms view high costs as a significant challenge to AI adoption.

Data Management: A Persistent Pain Point

The survey also underscores ongoing struggles with data management in the GP/LP market:

• 65% of firms report challenges with data accuracy and aggregation.
• Only 6% express a high rate of satisfaction with their current data management solutions.

These issues are particularly pressing as 58% of GPs rank data collection and reporting as their highest organizational priority. Key data management challenges include:

• Lack of integration across data sources (30%).
• Difficulties in gathering and managing data (26%).

Firms also highlighted their top priorities for data solutions:

• Security (96%).
• Ease of use (92%).
• Advanced data and analytics capabilities (88%).
• Scalability (86%).

A Call for Transformation

“The survey findings reveal an industry at a crossroads, where the potential of advanced technologies like AI and robust data solutions remains out of reach for many firms,” said Ivan Lantanision, Chief Product Officer of Allvue. “As the market evolves, overcoming these challenges will be critical to maintaining a competitive edge. We look forward to empowering firms to excel in the year ahead.”

For more insights and to access the full report, download it here.

About Allvue Systems

Allvue is a leading provider of technology for investment managers in the private capital and credit markets industry. Its mission is to empower superior investment decisions by pairing modern cloud-based software solutions with capabilities across multiple asset classes. Allvue’s software solutions serve the entire investment lifecycle and are seamlessly integrated to provide a comprehensive product suite, serving firms of all sizes worldwide, including private equity managers, private debt managers, public credit managers, fund administrators, and banks.

Allvue was established in 2020 through the merger of Black Mountain Systems and AltaReturn, two leading providers of investment technology solutions. Allvue is headquartered in Miami with locations throughout North America and Europe. With a commitment to innovation and a focus on multiple asset classes, Allvue’s software solutions allow its clients to operate and grow their businesses more effectively by automating manual processes, improving data accuracy and consistency across workflows, and delivering enhanced analytics.

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